Inside Investor Relations - Influential group launches push for integrated reporting
Overview
Inside Investor Relations - Influential group launches push for integrated reporting
Posted: 04 August 2010
Inside Investor Relations asked reporting specialists about move to global accounting framework for corporate sustainability. SAS's client partner, Adrian Parker, shared his views:
'An influential group of decision makers has launched a project to create a global accounting framework for corporate sustainability.
The idea is to build a framework that covers both financial and
non-financial reporting, making it easier for companies to talk
about both at the same time and have the information verified by a
third party.
The International Integrated Reporting Committee (IIRC) was
launched this week by the Prince's Accounting for Sustainability
Project - set up by HRH The Prince of Wales - and the Global
Reporting Initiative (GRI).
It has the backing of the four big auditing firms, the 100 top
finance directors in the UK, the Association of Chartered Certified
Accountants, the International Corporate Governance Network, and
many other influential organizations and individuals.
Mervyn King, chairman of the GRI, is the deputy chairman of the
IIRC's steering committee. 'To make our economy sustainable we have
to relearn everything we have learnt from the past,' he says in a
statement. 'That means making more from less and ensuring that
governance, strategy and sustainability are inseparable.'
The move taps into the demand from investors and other
stakeholders to see integrated reporting, where companies discuss
financial and sustainability issues at the same time.
One recent convert to integrated reporting is Pfizer, which has
announced plans to bring together its annual review and
sustainability report over the next two years.
Adrian Parker, client partner at corporate reporting firm SAS,
welcomes the new project. 'This is a great initiative - encouraging
increased disclosure, transparency and the integration of
sustainability are some of the key issues in the corporate
reporting arena today,' he says.
'We see improvements year on year in the sustainability elements
of companies' narrative reporting but our research demonstrates
there is still room for improvement.'
The project has not met with universal backing, however. One
sustainable reporting expert says the project could jeopardize the
future of the stand-alone CSR report. 'Where will the impetus come
from to expand CSR and develop new thinking?' he asks.
A full list of backers of the project is available to read on
the IIRC's website.'